FIRST QUARTER NET INCOME DOWN FOR GREY GLOBAL

Published on May 12, 2001.

(May 11, 2001) -- While Grey Global Group saw gross billings in the first quarter of 2001 climb 6% to $2.03 billion, and revenue rise almost 6% to $304.8 million, net income for the three-month period dropped.

Grey reported first-quarter net income of $245,000, compared to $5.1 million for the same period in 2000. Additionally, Grey's earnings per common share were 27 cents for the quarter, versus $4.11 in the same period last year.

The company stated that its first-quarter results were adversely affected by "general weak business conditions in the U.S." In addition, Grey noted "weakness, in particular, in a number of operations which had a concentration in serving certain technology-related and telecom sector clients." -- Laura Hughes